THE BOURSE WHISPERER: Australian exploration company, Global Geoscience (ASX: GSC) has formed an alliance with global Chilean copper major, Antofagasta to explore for copper in the United States.
Global Geoscience has signed a non-binding letter of intent with Antofagasta to search for copper in Arizona in the United States of America.
Antofagasta will fully fund the alliance, while Global will be the operator, including for the first two years of any project the major judges to be a Designated Project.
“The proposed exploration alliance with Antofagasta is a major development for our company and a strong endorsement of our focus on greenfield exploration,” Global Geoscience managing director Bernard Rowe said in the company’s announcement to the Australian Securities Exchange.
“The alliance will allow Global to explore and rapidly advance its targets in one of the world’s great copper provinces.
“Combined with our existing partnership with another large producer – Osisko Mining – for gold in Nevada, Global will have a very significant copper and gold presence in south-western USA.”
Global explained the initial focus of the alliance will be 13 target areas it has identified using its in-house targeting method.
The alliance will complete reconnaissance exploration on the 13 targets and, where justified, conduct follow-up exploration and apply for and/or acquire tenure.
Antofagasta has the right to select any or all of the targets for further exploration, and these will be deemed Designated Projects.
The copper major will then have an option to earn a 51 per cent interest in any Designated Project by spending US$1 million within two years.
It has a further option to increase its interest from 51 per cent to 70 per cent by spending an additional US$4 million over an additional four years.
Expenditure requirements are per project.
The alliance is conditional upon the two entities completing a formal agreement.
Antofagasta is one of the world’s largest copper producers with four operating mines in Chile.